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Growth-focused portfolio with heavy tech exposure and concentrated stock positions

Report created on Aug 21, 2025

Risk profile Info

5/7
Growth
Less risk More risk

Diversification profile Info

2/5
Low Diversity
Less diversification More diversification

Positions

The portfolio is heavily weighted towards technology, with significant positions in major tech companies and ETFs that focus on the technology sector and large-cap growth. This concentration in a single sector and a few high-performing stocks, alongside a complete allocation to equities, indicates an aggressive growth strategy. However, this approach comes with an increased level of risk due to the low diversification across sectors and asset classes. The heavy reliance on a few stocks and the tech sector can lead to significant volatility.

Growth Info

Historically, this portfolio has exhibited a high Compound Annual Growth Rate (CAGR) of 24.68%, although it has also faced a substantial maximum drawdown of -53.05%. These figures underscore the portfolio's aggressive growth nature and high risk. The days contributing most to returns are relatively few, highlighting the volatility and the risk of timing in such a concentrated portfolio. While past performance has been strong, it's crucial to remember that such high returns come with equally high risk.

Projection Info

Using a Monte Carlo simulation, the forward projection shows a wide range of potential outcomes, with a median increase of 3,132.1% but also scenarios where gains are much more modest. This analysis, while useful for understanding potential volatility and outcomes, is based on historical data and cannot predict future market movements with certainty. It suggests that while there is potential for significant growth, there is also substantial risk.

Asset classes Info

  • Stocks
    100%

The portfolio’s allocation is entirely in stocks, with no presence in bonds, real estate, commodities, or cash. This singular focus on equities, especially within the technology sector, amplifies both potential returns and volatility. Diversification across different asset classes can provide a buffer against market downturns, something currently lacking in this portfolio.

Sectors Info

  • Technology
    50%
  • Financials
    16%
  • Telecommunications
    16%
  • Consumer Discretionary
    6%
  • Health Care
    4%
  • Industrials
    4%
  • Consumer Staples
    2%
  • Energy
    1%
  • Real Estate
    1%
  • Basic Materials
    1%
  • Utilities
    1%

With 50% of the portfolio in technology, followed by financial services and communication services, there's a clear sectoral concentration. This concentration in high-growth areas has likely contributed to the portfolio's historical performance but also increases susceptibility to sector-specific risks. Diversifying across more sectors could reduce risk without necessarily compromising growth potential significantly.

Regions Info

  • North America
    100%

The geographic allocation is entirely focused on North America, lacking exposure to developed markets in Europe, Asia, and emerging markets. This concentration in a single region increases the portfolio's vulnerability to regional economic downturns and misses out on potential opportunities for growth in other parts of the world.

Market capitalization Info

  • Mega-cap
    70%
  • Large-cap
    16%
  • Mid-cap
    9%
  • Small-cap
    3%
  • Micro-cap
    1%

The portfolio's emphasis on mega-cap stocks (70%) aligns with its growth and technology focus, as these companies often dominate the tech sector. While large-cap stocks tend to be more stable than smaller companies, the concentrated nature of this investment strategy still poses a significant risk, especially if these sectors face downturns.

Redundant positions Info

  • Schwab U.S. Large-Cap Growth ETF
    Vanguard Information Technology Index Fund ETF Shares
    Vanguard Total Stock Market Index Fund ETF Shares
    High correlation

The high correlation among the ETFs and individual tech stocks indicates a redundancy in holdings, which diminishes the benefits of diversification. This overlap contributes to the portfolio's overall risk, as it increases exposure to the specific performance of the tech sector and large-cap growth stocks.

Risk vs. return

This chart shows the Efficient Frontier, calculated using your current assets with different allocation combinations. It highlights the best balance between risk and return based on historical data. "Efficient" portfolios maximize returns for a given risk or minimize risk for a given return. Portfolios below the curve are less efficient. This is informational and not a recommendation to buy or sell any assets.

Click on the colored dots to explore allocations.

Optimizing this portfolio involves addressing its high correlation and lack of diversification. By reducing overlap in holdings and incorporating assets from different sectors, regions, and asset classes, the portfolio can achieve a more balanced risk-return profile. This adjustment would not necessarily mean abandoning the growth focus but rather enhancing the portfolio's resilience against market volatility.

Dividends Info

  • Alphabet Inc Class C 0.40%
  • Microsoft Corporation 0.50%
  • Schwab U.S. Large-Cap Growth ETF 0.40%
  • Vanguard Information Technology Index Fund ETF Shares 0.50%
  • Vanguard Total Stock Market Index Fund ETF Shares 1.20%
  • Weighted yield (per year) 0.58%

The dividend yield across the portfolio averages 0.58%, which is relatively low, reflecting the growth-oriented nature of the investments. For investors prioritizing capital appreciation over income, this yield might be acceptable, but it underscores the portfolio's focus on long-term growth rather than generating regular income.

Ongoing product costs Info

  • Schwab U.S. Large-Cap Growth ETF 0.04%
  • Vanguard Information Technology Index Fund ETF Shares 0.10%
  • Vanguard Total Stock Market Index Fund ETF Shares 0.03%
  • Weighted costs total (per year) 0.03%

The portfolio benefits from relatively low costs, with Total Expense Ratios (TER) for the ETFs being minimal. This efficient cost structure is advantageous for long-term growth, as lower costs can significantly impact net returns over time. Keeping costs low is a positive aspect of this portfolio that should be maintained.

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